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The ins and outs of certified pre-owned

Automaker CPO programs can take some of the worry out of used-car buying

January 30, 2017

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A friend of ours bought a used SUV with 30,000 miles on it. They never made it home the day it was purchased because the water pump failed. Another acquaintance picked up a used minivan. Within three days the A/C stopped working, an anti-lock brake warning light came on and the rear wiper stopped working. Unfortunately, stories like those are still around. They seem endless.

Those things would never happen to you, of course, because Autoweek readers are the savviest bunch in the car world. For the most part, you know what car, truck or SUV you want, and you go out and get it. But even you might know less than you should about buying a used car, and now’s a great time to consider one: Automotive News reports that the number of used cars, trucks and SUVs coming off lease should increase this year to the point that used-car demand might not keep up with supply, driving prices down.

Thus used-vehicle certification programs might make sense for you or your family’s needs -- and why you might want to consider an automaker-backed certified pre-owned (CPO) program, now an important contributor to a car company’s bottom line, according to Automotive News. How do CPO programs work?

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Unlike buying a car, truck or SUV from a used-car dealer or on eBay or Craigslist (buyer beware!), CPO cars are sold through licensed new-car dealers. Gone, or nearly gone, are the days when dealers slapped a big sticker on an arthritic used car’s windshield proclaiming the jalopy Certified or a Blue Ribbon Choice. Those cars were often "certified" until you got about a mile from the lot.

These days, CPO cars have been poked and prodded – that is to say, thoroughly inspected. How thoroughly depends on the automaker. Audi, for example, has a 300-point checklist. Once things such as mileage and the absence of collision damage are verified, any wear items like brakes and wiper blades have been reconditioned as needed, and the vehicle has been cleaned up and detailed, it goes on the lot as a Certified Pre-Owned vehicle, complete with an automaker-backed warranty and a history report.

Those warranties vary by automaker but are for the most part similar to a new-car warranty. Some have deductibles, some don’t, and length of coverage and mileage vary. Some include roadside assistance, some don’t. Bottom line: You still need to read the fine print, even on a CPO purchase.

Automotive News says that while many CPO cars will cost you more than through a private seller, you should still save somewhere between 25 and 40 percent compared to buying new. And yes, in some cases you can even lease one -- since many certified cars are coming off lease, mileage should be low.

Most manufacturers fighting it out in the U.S. market have a CPO program, turning what can be a horrifying used-car buying process into one that’s far more buyer-friendly, reliable and comforting. Get shopping!